Flutter Entertainment plc, the company behind household names Paddy Power and Betfair, have announced that they will be suspending their 2020 dividend payment, due to the disruption to the sporting calendar due to the continuing Coronavirus pandemic.
Flutter have also announced they will pay their 2019 dividend in ordinary shares, while cancelling a pro-rated dividend in relation to its merger with Stars Group Inc. Eleven days ago we reported here on Casinomeister, how the share price of Flutter Entertainment lost over 20% of their value, due to the mass cancellation of sporting events.
The company which has 7 million active customer in over 100 countries, announced these changes in response to the continuing global crisis surrounding the Coronavirus pandemic. Furthermore, concerning their acquisition of the Stars Group Inc, Flutter Entertainment in their announcement to the stock market, stated: “Given the impact of the current disruption caused by COVID-19 and the ambition for the Combined Group to de-lever, the Flutter Board considers it prudent to suspend the dividend for the current financial year ending 31 December 2020.”
“The Flutter Board’s future capital management policy for the Combined Group remains to target a leverage ratio of 1.0x to 2.0x over the medium term. As such, the Flutter Board will continue to monitor the calendar of sporting events and associated performance of sports betting as well as the Combined Group’s anticipated deleveraging and balance sheet position.”
“It will then decide the appropriate time to reinstate a dividend for the Combined Group.”
Flutter’s Chief Executive Officer, Peter Jackson, commenting, said: “In these challenging times I am more convinced than ever of the strategic fit of these two complementary businesses. The combined business will enjoy improved geographic and product diversification and allow us to advance our strategic goals.”